Conventional Restaurant with
New
For Sale
$395,000
422 N L Street, Harlingen, TX 78550
COMMERCIAL - Harlingen, TX
Property Size2,708 SF
Lot Size0.50 Acres
Price / SF$145.86
Days on Market1
Property Features for 422 N L Street
General Information
Property type
Commercial Sale
Property subtype
Other
Parking
27
Parking features
Off Street, Special Needs
Patio and Porch features
Patio
Exterior features
Storage, Mature Trees
Accessibility
Accessible Approach with Ramp
Appliances
Electric Water Heater, Water Heater (Other Location)
Subdivision
Hasselmeier Addition 2
Directions
Heading east on US-83 exit 175 toward Tyler Ave/Dixieland Rd. Pass Wendy's onto Tyler Ave. Turn left onto US-77 frontage Rd. Slight roght onto N T St., turn right onto Fair Park Blvd. Then make a right on west Teege Ave. and drive down until you get to L St. The building will be directly in front of you. Make a right on L street and take a left on W Jefferson Ave. which will take you to the front of the building and the paved parking.
Standard status
Active
APN
1846200020001000
Size
2,708 SF
Lot size
0.50 Acres
Taxes and HOA fees
Tax Year
2026
Tax Annual Amount
6269
Utilities
Heating system
Electric (Heating), Central
Cooling system
Window Unit(s), Central Air, Electric
Building Details
Year built
2006
Floors in Building
1
Building materials
Aluminum Siding, Frame/Wood, Wood Siding
Roof type
Metal
Additional Structures
Storage
Listing Agency:
Encore Fine Properties
(956) 821-6170
Listed By:
Breann Fay Nelson
(956) 800-0331
Added: Aug 10
Last Checked: Aug 10 at 5:06AM
MLS# 455834
Copyright © 2026 Greater McAllen Association of Realtors. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This 2,708-square-foot conventional restaurant sits on a 0.4959-acre parcel and was built in 2006. The property includes griddle, fryer, grill, commercial refrigerator, freezer, three-compartment sink, cold prep table, shelves, racks, and a POS system located in the storage room. Televisions are also included. Interior support areas are complemented by a patio, off-street parking, central heating and air conditioning, and a metal roof.
Located at 422 N L Street in Harlingen, Texas, the property includes an accessible approach with ramp, mature trees, and storage. Construction incorporates aluminum siding, frame and wood, and wood siding. Electric service supports the water heater, heating, and cooling systems.
Located at 422 N L Street in Harlingen, Texas, the property includes an accessible approach with ramp, mature trees, and storage. Construction incorporates aluminum siding, frame and wood, and wood siding. Electric service supports the water heater, heating, and cooling systems.
Key Highlights
- 2,708 SF restaurant property on a 0.4959‑acre parcel
- Built in 2006 with a metal roof
- Kitchen equipment includes griddle, fryer, grill, refrigerator, freezer, and three‑compartment sink
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$27,609
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
6.99%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$552,180
$552.2K
Cap Rate 7%
$394,414
$394.4K
Cap Rate 9%
$306,767
$306.8K
Market Conditions
NOI Build-Up for 2,708 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$39.0K $14.40/SF
− Vacancy
−$2.2K −$0.81/SF
EGI
$36.8K $13.59/SF
− OpEx
−$9.2K −$3.40/SF
NOI
$27.6K $10.20/SF
Area
Cameron County, TX
Vacancy
5.60%
Lease Rate
$14.40 /SF/Yr
Expense Ratio
25.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$552,180
Cap Rate 7%
$394,414
Cap Rate 9%
$306,767
Alternative Uses
Best Use
Specialty Retail
$394.4K
$345.1K – $460.2K
NOI $27,609 @ 7.0% cap · market cap 6.99%
Second Best
Industrial
$181.0K
$158.4K – $211.2K
NOI $12,669 @ 7.0% cap · market cap 3.21%
Theoretical Best
Healthcare Medical
$466.3K
$408.0K – $544.0K
NOI $32,639 @ 7.0% cap · market cap 8.26%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
559
Businesses Nearby
6k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
Exxon
Shops & Services
5,583 visits/mo
0.4 miles
Demographics for 78550, TX
56,038
Population
22,347
Households
2.5
Avg Household Size
35
Median Age
22%
College-Educated
77%
High-School Grad
94.2 sq mi
ZIP Area
595
Density / Sq Mi
$51,524
Median Household Income
$32,065
Median Earnings
$863
Median Rent
$120,500
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Restaurant property includes commercial kitchen equipment, storage, patio, and ramp access.
Where is this conventional restaurant located?
The property is located at 422 N L Street Harlingen, TX.
What is the asking price?
The asking price for this property is $395,000.
What are key features of this property?
This property features: 2,708 SF restaurant property on a 0.4959‑acre parcel; Built in 2006 with a metal roof; Kitchen equipment includes griddle, fryer, grill, refrigerator, freezer, and three‑compartment sink
